G7 leaders pledge stronger cooperation against cyber crime, renew FX pledges

Financial leaders of seven leading world economies pledged stronger cooperation against cyber crime on Saturday and not to use foreign exchange to gain competitive advantage, but stuck to their cautious wording on trade, their final communique showed. Finance ministers and central bank governors from the United States, Canada, Japan, France, Germany, Italy and Britain met in the Italian city of Bari to discuss the world economy, combating terrorist funding, cyber security and taxes…

Xi Jinping pledges more than $100 billion for development banks in China

BEIJING — President Xi Jinping of China delivered a sweeping vision of a new economic global order on Sunday, positioning his country as an alternative to an inward-looking United States under President Trump. Mr. Xi, surrounded by autocratic leaders from Russia and Central Asia at a forum in Beijing, pledged more than $100 billion for development banks in China that he said would spearhead vast spending on infrastructure across Asia, Europe and Africa…

UK workers to face rising unemployment, falling real pay over Brexit

British workers should brace themselves for rising unemployment and falling real pay in the year ahead as the impact of a Brexit slowdown is increasingly felt in the jobs market, reports have warned. The era of rapidly increasing employment is over, according to the forecasting group EY Item Club, which on Monday predicted the unemployment rate will rise from 4.7% now to 5.4% in 2018 and 5.8% in 2019…

Saudi Arabia, Russia to extend output cuts until March 2018

Major oil producers are preparing to extend output cuts until March 2018 in a bid to reduce a global supply glut. The energy ministers of OPEC kingpin Saudi Arabia and its biggest non-OPEC partner Russia met Monday and agreed to do “whatever it takes to achieve the desired goal of stabilizing the market,” Russia’s energy ministry said in a statement.
OPEC and some non-OPEC producers agreed in December to cut output by 1.8 million barrels per day for six months to help stabilize oil prices…

BOE warns of near-term squeeze on consumers as result of Brexit

The Bank of England has warned households that living standards will fall this year as the effect of the Brexit vote works its way through to higher prices and meagre pay deals. Presenting a sober assessment of the economic outlook just weeks before the general election on 8 June, the Bank’s governor Mark Carney predicted living standards could start to recover in 2018 but , in the meantime, inflation would be higher than pay growth this year making it a “more challenging time” for households…

G7 finance chiefs pressed U.S. not to break global consensus in trade, financial regulations

Finance chiefs from some of the world’s richest nations began a two-day meeting in Italy on Friday, with Europe, Japan and Canada hoping to come away with a clearer picture of U.S. President Donald Trump’s plans on important policies. Inequality, international tax rules, cyber security and blocking the funding of terrorism are the focus of the official agenda for Group of Seven finance ministers and central bankers who are meeting in the Adriatic port city…

U.S. CPI rises 0.2% in April amid rising cost of gasoline, food and rents

WASHINGTON – U.S. consumer prices rebounded in April amid increases in the cost of gasoline, food and rents, pointing to steadily rising inflation that could keep the Federal Reserve on track to raise interest rates next month. The Labor Department said on Friday its Consumer Price Index rose 0.2 percent after dropping 0.3 percent in March. The rise in prices suggested that March’s drop, which was the first in 13 months, was an aberration…

Draghi defends ECB’s monetary stimulus at Dutch parliament

European Central Bank President Mario Draghi clashed with Dutch lawmakers on Wednesday over the ECB’s monetary stimulus, underscoring mounting pressure for a policy change from Frankfurt as the region’s economy heats up. Mr. Draghi’s rare visit to The Hague comes at a sensitive time for the ECB, which is considering when to start winding down its EUR60 billion-a-month bond-purchase program, known as quantitative easing. The program is currently due to run at least through December…

Trade protectionism is a ‘dead end’, says NY Fed Dudley

Trade protectionism is a “dead end” that may score political points but will ultimately hurt the U.S. economy, one of the most influential Federal Reserve officials said on Thursday in the central bank’s strongest defense yet of open borders in the face of a skeptical Trump Administration. William Dudley, head of the New York Fed, did not mention U.S. President Donald Trump by name in a speech at the Bombay Stock Exchange…

OPEC to U.S.: Please stop pumping so much, help us balance market

OPEC has asked a favor of other major producers: Please stop pumping so much and help us balance the market. The unusual plea was issued Thursday in the cartel’s closely-watched monthly report, which found that global markets are still suffering from too much supply. The report said that balancing the market would “require the collective efforts of all oil producers” and should be done “not only for the benefit of the individual countries, but also for the general prosperity of the world economy.”…

U.S. jobless claims unexpectedly falls, producer prices up 0.5%

New applications for U.S. jobless benefits unexpectedly fell last week while producer prices rebounded strongly in April, pointing to a tightening labor market and rising inflation that could spur the Federal Reserve to raise interest rates in June. Labor market strength was also underscored by a sharp drop in the number of Americans on unemployment rolls to a 28-1/2-year low in the final week of April…

U.S. import prices jump to 0.5% in April, boosted by petroleum, motor vehicles

U.S. import prices increased more than expected in April amid rising costs for petroleum products and a range of other goods, which could help boost domestic inflation. The Labor Department said on Wednesday that import prices jumped 0.5 percent last month after an upwardly revised 0.1 percent gain in March. Import prices have now increased for five straight months…

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